The Basics – what you need to know to begin with
Maximum mortgage amount for non residents buying a property in Spain is currently 70% of the purchase price or the valuation, whichever is the lower. So you need to pay a 30% deposit plus have around 12% to cover taxes and legal costs. Therefore the total amount of cash required for a non resident is approximately 42% of the purchase price
Quick application – fast response!
Example of a 70% mortgage
- You are buying for 150,000€.
- The bank will lend you 70% maximum which is 105,000€
- The 30% deposit will be 45,000€
- The costs on top of the price will be around 18,000€
- So you need a total of 63,000€ to buy the property if your Spanish mortgage application is successful
Why take advice from a professional broker?
Spanish mortgage information is not readily available on the internet. Terms and conditions are changing on a weekly basis so if the website you’re looking at is not up to date you will be getting the wrong information. As the most active group of mortgage brokers in Spain we are on top of what all the Spanish banks are doing and can give you the advice you need when purchasing a property in Spain. Changing the terms and conditions of Spanish mortgages (Re-mortgaging) is both expensive and difficult so ask an expert before you ask anyone else and make sure you are getting the best possible advice.
After all, most mortgages in Spain are financial agreements up to 30 years or longer and once you are locked in there is very little you can do if and when you find out the mortgage you have is not what you thought. Here are the main reasons we get asked every day by people if we can find them a better mortgage:
- The mortgage is based on an obscure (and expensive) base rate
- The bank has changed the interest rate at the last moment leaving them with insufficient time to find another lender
- The bank has changed the term of the mortgage at the last moment increasing the monthly payments
- The bank has added on compulsory and expensive life insurance which they are contractually obliged to pay for the life of the mortgage
- There is a far better lender with a far better rate but you are unable to back out and apply for their superior terms due to a pending completion date
These are unfortunately very common occurrences and we know this because almost 70% of all enquiries we receive are from unhappy Spanish mortgage holders desperate to switch to another lender or from people 80% of the way through their purchase who have realised they are not getting the mortgage they need.
In 90% of cases we are unable to help due to the inflexible criteria applied to Spanish remortgages as well as the high costs of switching banks (approximately 4% to 5%) Or in the case of buyers, they have run out of time and we cannot start the application process over with a more suitable bank.
Use a broker – not an estate agent!
Obtaining a Spanish mortgage is not the same as obtaining a UK mortgage – these products are vastly different as is the marketplace here. Remember, Estate agents in Spain offering “mortgage advice” are completely unregulated whereas all of our brokers come from a UK financial (and heavily regulated) background. Many “mortgage brokers” and estate agents in Spain have been here 20 plus years doing things the “Spanish way” consequently they have little or no concept whatsoever of:
- Best advice
- Know your client rules and guidelines
- Due diligence
Why compromise yourself and risk your money? Yes we charge a fee but we also know exactly what we are doing and the best way to approach each and every case. When you are taking on a financial product that runs into hundreds of thousands of Euros wouldn´t you feel safer in the knowledge that your case is being handled by a true expert?
Contact us now and make sure you get the advice you deserve!